(note: I didn't come up with this, I just think it's cool and wanted to share)
NEWGAME+ mode = time looping
The Player's death in the Journey to the Nexus allows the Monumental to bind
the player's soul to the Nexus. This binding returns the soul of the player to
the Nexus whenever they die, preventing permanent death. The player's death in
the tutorial is what the Monumental needed to make them his slave, so that he
can bind the player's soul to the Nexus. Like the Maiden in Black, the player
will not be freed until they do the Monumental's bidding, defeating the Old
One. Despite the Monumental's promise to release the player when the Old One is
defeated, no matter what the player does, good or evil, they cannot escape the
Nexus as the player begins a new game+ after the credits. The player is doomed
to repeat their quest for all eternity. This is likely what the Crestfallen
Warrior came to realize before giving up and eventually fading away.
The cruelty of it all is the Crestfallen Warrior would not be able to remember
that he figured it out. He is an example that even giving up won't save the
player from the Nexial Binding. If he is another "player" trapped in this time
loop, when he becomes soul-deprived he starts to lose his memory just before
fading away. In a new game+, he reappears maintaining all his knowledge up to
the point when he began to give up and stop feeding on souls (just before he
met the player) with no knowledge that time is still looping.
If the player continues to struggle on their quest will begin again, each time
more difficult than the last, and they maintain their memories of looping. If
the player gives up, they too will fade away until another warrior succeeds in
defeating the Old One and begins the loop again. From that point on, the player
will join the Crestfallen Warrior in forever wallowing in despair without the
knowledge that time continues to loop. Even the loss of one's soul will not
free them from the Nexus.
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http://img.imgcake.com/saveusmariajpghy.jpg